I just noticed that hospital stocks have become an increasingly popular choice among many investors. It’s not because they’re looking for short-term profits, but because they’re a business with steady income and low risk. In an era when the market is volatile, these stocks don’t surge wildly—but they also don’t fall as sharply. In other words, they’re defensive stocks you can hold for the long term.

Choosing good hospital stocks really depends on the strategy each hospital follows. Some focus on international patients, while others emphasize Thai people and social security coverage. For example, BDMS (Bangkok Dusit Medical Services) has a hospital network both in Thailand and overseas. Its market cap is 319,430 million baht, the stock price is 20 baht, P/E is 19.5x, and ROE is 16.8%. This is one of the market standouts.

If you’re looking for hospital stocks that focus on foreign patients, BH (Bumrungrad Hospital) is also interesting. Its price is 167.50 baht, and ROE is as high as 31.9%—that’s a very high figure, showing the company uses its capital effectively. BCH (Bangkok Chain Hospital) is also a good option, with a stock price below 10.20 baht and a P/E of 19.7x, suitable for investors with limited capital.

For other options, RAM (Ramkhamhaeng Hospital) is well known for treating specialized conditions. Its price is 18.20 baht, but its P/E is high at 33.41x, so you need to look carefully. VIBHA (Vibhavadi Hospital) is priced at 1.88 baht—its stock price is low, but ROE is 8.49%. CHG (Chularat Hospital) is priced at 1.50 baht and focuses on cash-paying patients, with 65-70% of patients being cash-paying. PR9 (Praram 9 Hospital) is priced at 18.7-18.9 baht, with ROE at 14%, which isn’t bad at all.

Analyzing P/E and ROE is very important, too. P/E tells you how much price you’re paying for the company’s earnings. ROE tells you how well the company uses the capital we provide. High numbers may make ROE look good, but you must consider it together with P/E. If P/E is extremely high, it could mean the stock price is too expensive.

Choosing good hospital stocks also requires looking at their growth strategies. Some grow through mergers and acquisitions, some expand by opening new branches, and others target specific customer groups—such as grouping Chinese customers who want to have a baby, or focusing on end-to-end package services from treatment to rehab spa. Each strategy has its pros and cons. If growth comes from building new facilities, you’ll need to wait, because depreciation and ongoing expenses will follow.

Why are hospital stocks interesting? Because the population is increasing. Society is entering an aging era, demand for medical services is rising, and new diseases keep emerging all the time. These are opportunities for sustainable growth. This business has strong financial fundamentals: you invest once, and cash flow continues coming in, so you can ultimately recover your capital relatively quickly.

If you’re looking for hospital stocks whose customer base is mainly international, large players like BDMS and BH should fit the bill best. And if you’re interested in mid-sized companies with potential to expand, there are other options as well—but don’t forget to study the information carefully. Analyze based on fundamental factors and invest for the long term. This business isn’t one that delivers explosive returns; it’s about slowly but steadily accumulating wealth. Of course, that said.